Pentagon Expands List of Chinese Companies Linked to Military

The Pentagon has updated its list of companies it believes are linked to the Chinese military. Among the new additions are Alibaba, BYD, and Baidu. These companies, known for technology and innovation, are now restricted from receiving U.S. defense contracts.

The updated list reflects growing concerns over China’s strategy of utilizing non-state businesses for military purposes. Initially created in 2021, the list identifies companies thought to contribute to China’s defense industrial base. The Pentagon argues that these entities, while appearing civilian, provide avenues for the military to acquire advanced technologies and expertise.

In response, the Chinese Embassy criticized the U.S. for its approach. The embassy argued that such practices create unfair business conditions for Chinese companies abroad. Alibaba and Baidu also protested their inclusion. Both companies assert that they hold no ties to China’s military efforts. Alibaba emphasized its role in e-commerce, while Baidu highlighted its advancements in artificial intelligence and self-driving technologies.

This year’s list includes 188 entities, an increase from approximately 130 last year. Previously listed companies like DJI, known for drones, continue to face restrictions. While they can still conduct business in the U.S., being on the list poses reputational risks and leads to further limitations.

The House Select Committee on the Chinese Communist Party views the list as a warning. It encourages American businesses and government to avoid partnerships with these entities. The committee suggests publicly traded Chinese companies on U.S. exchanges be delisted to hinder China’s military growth.

The Pentagon justified including Alibaba by associating it with China’s Ministry of Industry and Information Technology. Despite its New York Stock Exchange listing, the tech giant allegedly bolsters China’s defense sector. Similarly, BYD and Baidu are tied to the same government ministry, which directs China’s technology and industrial policies.

BYD, a leader in the electric vehicle market, has had mixed reception. While former President Donald Trump welcomed Chinese automakers willing to invest in the U.S., several lawmakers are pushing for a ban on Chinese electric vehicles.

Another new entry on the list is robotics company Unitree. Known for its dancing robots showcased on NBC’s “America’s Got Talent,” Unitree faces scrutiny for receiving government assistance as a pivotal component in China’s supply chain. Neither BYD nor Unitree responded to requests for comments.